Shanghai Composite Rises for Seventh Consecutive Session, Driven by AI Stocks

China | EcoPulse24

The Shanghai Composite Index extended its gains in Thursday morning trading, rising by about 7 points (0.2%) to 3,948 points - recording its seventh consecutive winning session and the longest such streak since last July.

This momentum was supported by growing global investor interest in Chinese artificial intelligence (AI) companies, as investment funds seek to diversify portfolios and find new opportunities similar to the “DeepSeek” experience, amid concerns over a potential bubble in US tech stocks.

On the trade front, while the US administration announced plans to impose tariffs on Chinese chip imports, the decision to delay these tariffs until June 2027 limited the immediate negative impact on the market, helping preserve positive sentiment.

Domestically, the market received additional support after Beijing launched a package of measures to accelerate urban renewal projects and support real estate market stability through 2026 - steps that boosted expectations for improved economic activity in infrastructure and energy-linked sectors.

Utility and manufacturing stocks posted positive performances, while losses in consumer durables, transportation, and healthcare sectors curbed the index's gains. Notably, Ping An Insurance rose 3.7%, Foxconn Industrial climbed 1.4%, PetroChina advanced 0.8%, and China Construction Bank added 0.4%.

Conversely, the Shenzhen Composite Index fell 0.3%, ending a four-session winning streak, as investors adopted a more cautious approach amid holiday trading.

Analytical Perspective | EcoPulse24

The positive performance of the Shanghai Composite reflects a gradual shift in risk appetite toward the Chinese market, driven by the AI narrative and ongoing government economic support. If capital flows seeking alternatives to US tech stocks continue, the market may sustain its momentum, though the divergence between Shanghai and Shenzhen highlights ongoing selectivity and caution among investors in the near term.